Wind power giants give bleak view of 2024 as challenges persist

FRANKFURT/COPENHAGEN (Reuters) – The world’s three biggest wind power groups on Wednesday gave a sober view of the year ahead, citing ongoing challenges in the maturing sector that continues to suffer from project delays, equipment issues and inflation.

Siemens Energy, the world’s largest maker of offshore wind turbines, expects a 2024 loss before special items of around 2 billion euros ($2.15 billion) at its troubled wind division Siemens Gamesa, where quality problems at some onshore models have caused a major crisis.

Rising prices for components and regulatory delays have caused writedowns and losses across the industry despite robust demand for renewable technology.

The challenges will continue, according to Henrik Andersen, chief executive of Denmark’s Vestas, the world’s largest maker of wind turbines.

“Continued geopolitical volatility as well as slow permitting and insufficient grid build-out across markets are expected to cause uncertainty in 2024,” he said as the group scrapped its dividend and posted better-than-expected fourth-quarter results.

Orsted (CSE:), the world’s biggest offshore wind project developer, also responded to the sector’s ongoing woes, announcing a portfolio review as well as job cuts following major writedowns on delayed projects in the United States.

The Danish group said it would aim to slash fixed costs by 1 billion Danish crowns ($144 million) by 2026, which would include in 600-800 job cuts globally, flagging around 250 redundancies in 2024 as part of the review.

“In order to improve our competitiveness, ensure value creation, and ensure our ability to attract capital to the renewable build-out, we will make Orsted a leaner and more efficient company,” Orsted CEO Mads Nipper said.

($1 = 0.9288 euros)

($1 = 6.9260 Danish crowns)